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Lyttelton Times, Volume LXXXII, Issue 10466, 2 October 1894, Page 4

It was generally hoped that the correspondence laid on the table of the House of Eepreseutatives last week would set at rest, at least for a considerable time, the sinister rumours concerning the intentions of the Government with regard to the bank amalgamation proposals. But there are, it seoma, a number of people j who believe, or profess to bei Hove, that the Hon George M’Loau | and Mr John Murray are still trying to arrange the amalgamaI tion of the two banka whose affairs | have been so prominently before the j public during the past few weeks, and that the Colonial Treasurer will be prepared to deal with their new | proposals without the inieryentiou of

Parliament. We may say at once that we do not think there is the slightest ground for this belief. The events of last week suggest that neither the Bank of New Zealand nor the _ Colonial Bank is particularly anxious to complete the proposals. It has been shown that there is ample room for the wo institxitioaa to stand alone, and their directors have already commenced to urge their independent claims upon the confidence and support of the public. All this points to the indefinite postponement of the amalgamation scheme, and the rehabilitation of the senior bank without the assistance of its younger rival. At the same time, we are bound to admit that the position would bo more satisfactory if the intentions of the Government wore clearly defined. We have the utmost confidence in the ability and integrity of the Treasurer, and we are quite satisfied that in dealing with public questions he is not influenced one way or the other by tho improper considerations that have been so broadly suggested by a certain section of the Conservative Press. But there is no reason why even his hostile critics should be kept in doubt, Mr P. H. D. Bell introduced some time ago a Bill to prevent any bank having tho guarantee of the colony from acquiring the business of any other institution or entering into any contract for amalgamation without the authority of a special Act of Parliament. This, of course, would meet the case exactly, but if the Government cannot see its way to accept such legislation, it might allay all reasonable apprehension by undertaking that no proposals for amalgamation will be finally settled without the sanction of the House, It is scarcely necessary to remind Mr Ward that the very proper and, to our mind, sufficient conditions which he laid down in bis correspondence with Mr M’Lean and Mr Murray were not endorsed, or even discussed, by the representatives of the people. They practically terminated the negotiations between the banks and the Government, but we cannot argue from this fact that their adoptioa would be entirely satisfactory to the public. What is wanted, and what would disarm the rather silly criticism of the Government’s attitude, is a Ministerial assurance that no arrangement likely to materially affect the position of the guaranteed bank will be entered upon without the knowledge and consent of Parliament, and we hope that such an assurance will he given by Mr Ward before the .termination of the present session.